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Item 4D Memo-Manning Concrete RMC CITY OF Item 4D SOUTHLAKE MEMORANDUM (October 18, 2016) To: Ben Thatcher, Assistant City Manager From: Rob Cohen, Director of Public Works Subject: Approve annual purchasing agreement with Manning Concrete Sawing through an Inter-local Agreement (ILA) with the City of Grapevine in an amount not to exceed $975,000 Action Requested: Approve annual purchasing agreement with Manning Concrete Sawing (Manning) through an Inter-local Agreement (ILA) with the City of Grapevine in an amount not to exceed $975,000. Background Information: The City's Public Works Department requires the services of a concrete contractor for the repair of, and the placement of, new concrete pavement, curb and gutter, sidewalk, and other concrete structures throughout the year in order to arrest and retard the deterioration of the City's street and drainage infrastructure. Financial Considerations: The chart below is a graphical representation of the City's historical expenditures for this endeavor. Annual Expenditures on Concrete Services FY 2014- FY 2016 1.2 0.981 1 0.804 0.8 0 0.586 0.6 0.4 0.2 — 0 di 2014 2015 2016 Over the past 3 Fiscal Years, the City has spent an average of $892K for the installation of new or the repair and replacement of deteriorated concrete infrastructure. Although the numbers of City of Southlake Values: Integrity Innovation♦ Accountability ♦ Commitment to Excellence♦ Teamwork Item 4D projects have remained the same over the past 3 years, the magnitude of the projects has decreased. This trend is expected to continue in FY 2017. In preparation for FY17 execution, Southlake partnered with the City of Grapevine to award an additional year to Manning's base contract. Grapevine determined that Manning was the best value for this service since Manning has provided exceptional service to both Cities and has not asked for a contract price increase since 2014. Manning has held the unit price of concrete constant despite the continual increase in cost of ready mix concrete the past several years. The Bureau of Labor and Statistics published Producer price indexes for the net output of selected industries and their products. Ready mix concrete had a 3.8% price increase from Aug 2014 — Aug 2015 and a 3.5% price increase from Aug 2015 —Aug 2016. If historical trends continue, we can expect ready mix concrete unit prices to continue to rise. Southlake will be insulated from this increase for the next year by continuing to receive personal services from Manning. Strategic Link: The approval of the agreement links to the City's strategy map relative to focus areas of Infrastructure and Partnerships & Volunteerism. The specific corporate objectives that are met by these services are to collaborate with select partners to implement service solutions, and to provide and maintain high quality public assets. Citizen Input/ Board Review: N/A Legal Review: This agreement conforms to the previous ILAs that have been reviewed by the City attorney. Alternatives: The City Council may approve or deny this annual purchase agreement. Supporting Documents: N/A Staff Recommendation: Approve annual purchasing agreement with Manning Concrete Sawing through an Inter-local Agreement (ILA) with the City of Grapevine in an amount not to exceed $975,000. Staff Contact: Rob Cohen, Director of Public Works Cristina McMurray, M.P.A, C.P.M, Deputy Director/Operations